Islamic Finance Assets Forecast to Reach $9.6 Trillion by 2030

Global Islamic finance assets are projected to climb to $9.6 trillion by 2030, extending a period of rapid expansion as demand for Shariah-compliant banking, investment and capital-market products grows across major emerging economies.

The projection follows a strong performance in 2025, when Islamic finance assets reached approximately $6.2 trillion, representing year-on-year growth of 13%, according to Standard Chartered.

If the forecast is achieved, the industry would expand by roughly 55% from its 2025 level in just five years, reinforcing Islamic finance’s evolution from a relatively specialized segment into an increasingly important component of the global financial system.

The growth is expected to be supported by deepening financial connections between the Gulf Cooperation Council, Southeast Asia, South Asia and Africa, regions that combine large Muslim populations, expanding economies and substantial infrastructure financing requirements.

Islamic Finance Continues Its Global Expansion

The latest projection builds on several years of strong asset growth.

Standard Chartered had previously forecast global Islamic finance assets to reach about $7.5 trillion by 2028, up from $5.5 trillion in 2024, reflecting the sector’s increasing relevance across international markets.

More recent estimates indicate that growth accelerated further in 2025, pushing assets above $6 trillion and raising the longer-term forecast to $9.6 trillion by the end of the decade.

Islamic finance covers a broad range of financial activities structured according to Shariah principles, including Islamic banking, sukuk, investment funds, takaful insurance and other financing arrangements.

The industry has historically been concentrated in the Gulf and Southeast Asia, but demand is becoming increasingly international.

GCC Expected to Remain a Major Growth Engine

The GCC is likely to remain at the centre of the industry’s expansion.

Saudi Arabia, the UAE, Bahrain, Kuwait and Qatar have established sizeable Islamic banking sectors and active sukuk markets.

Large-scale infrastructure spending, energy-transition projects, urban development and economic diversification programmes across the Gulf are creating additional demand for long-term financing.

Islamic finance can provide another source of capital for these projects while attracting investors seeking Shariah-compliant instruments.

The region also benefits from relatively mature regulatory frameworks and financial institutions with decades of experience structuring Islamic products.

Cross-Border Financial Corridors Offer Major Opportunity

One of the most significant opportunities lies in strengthening financial links between regions where Islamic finance already has an established or growing presence.

Standard Chartered has highlighted the potential for Islamic finance to deepen connectivity across corridors connecting the GCC, ASEAN, South Asia and Africa.

These regions contain some of the world’s fastest-growing economies and substantial demand for infrastructure, trade finance and investment capital.

Greater financial integration could allow Gulf investors to fund projects in Asia and Africa while giving companies in those markets access to deeper pools of Shariah-compliant capital.

That could broaden Islamic finance beyond domestic banking and make it an increasingly important tool for international investment.

Sukuk Market Could Play a Bigger Role

Sukuk, often described as the Shariah-compliant alternative to conventional bonds, are expected to remain one of the industry’s key growth areas.

Rather than paying conventional interest, sukuk structures provide investors with returns linked to underlying assets or economic activities that comply with Islamic principles.

Corporations and governments increasingly use sukuk to raise capital for infrastructure, refinancing and development programmes.

Standard Chartered reported previously that the number of corporate sukuk issuers had nearly doubled since 2020, while issuance volumes increased 38% to $58.8 billion in 2024.

A broader issuer base could make the market deeper and improve access for international investors.

Islamic Banking Remains the Largest Segment

Islamic banking continues to account for the largest share of Shariah-compliant financial assets.

Islamic banks provide many of the same services as conventional institutions, including home financing, corporate finance, deposits, trade finance and investment products, but transactions are structured to comply with Islamic financial principles.

The prohibition of conventional interest is one of the defining characteristics, alongside requirements concerning the structure of transactions and eligible investments.

Growing consumer awareness, supportive regulation and increased product availability have helped Islamic banks expand beyond their traditional customer base.

In some markets, Islamic and conventional banks increasingly compete for the same corporate and retail clients.

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Demand Is Extending Beyond Muslim-Majority Markets

The sector’s long-term potential is not limited to countries with Muslim-majority populations.

International investors may use sukuk and Islamic funds as portfolio-diversification tools, while companies can access Islamic capital markets as an alternative source of funding.

Financial centres outside the Middle East and Southeast Asia have also developed frameworks to facilitate Shariah-compliant transactions.

This internationalization could become increasingly important as the industry approaches the projected $9.6 trillion level.

Greater participation from conventional global banks, institutional investors and asset managers would make Islamic finance more closely connected with mainstream global markets.

UAE Could Strengthen Its Role as an Islamic Finance Hub

The UAE is well positioned to benefit from the next phase of growth.

Dubai and Abu Dhabi already host major Islamic banks, asset managers and capital-market institutions, while UAE companies and government-related entities frequently access the sukuk market.

The country’s role as a link between Asia, Africa, Europe and the Middle East provides another advantage.

As cross-border Islamic finance increases, UAE financial institutions could play a larger role in arranging transactions connecting capital providers in the Gulf with borrowers and projects elsewhere.

This is particularly relevant to infrastructure, trade, renewable energy and real estate financing.

Saudi Arabia Remains Central to the Industry

Saudi Arabia’s financial system represents another major pillar of global Islamic finance.

The Kingdom combines a large domestic banking sector with substantial government and corporate financing requirements linked to its economic transformation programmes.

Infrastructure, tourism, housing, transportation and energy projects all require significant amounts of long-term capital.

Islamic banking and sukuk provide additional channels for financing those investments.

Saudi Arabia’s scale means developments in its financial sector can materially affect global Islamic finance asset growth.

Africa Presents Significant Untapped Potential

Africa is another region where Islamic finance could expand considerably.

Countries across East, West and North Africa require substantial funding for infrastructure, energy, housing and private-sector development.

At the same time, several African markets have large Muslim populations but relatively limited access to sophisticated Shariah-compliant financial products.

Greater participation from Gulf and international Islamic banks could help narrow that gap.

Sukuk could also provide governments and companies with an alternative mechanism for raising capital, particularly for infrastructure development.

ASEAN Remains a Mature Islamic Finance Market

Southeast Asia, particularly Malaysia and Indonesia, remains one of the industry’s most important regions.

Malaysia has built an internationally recognized Islamic capital market and remains a major centre for sukuk issuance and Shariah-compliant investment management.

Indonesia’s enormous population and expanding economy provide additional growth potential.

Stronger financial links between these markets and the GCC could create larger pools of cross-border investment and improve market liquidity.

The relationship between Gulf capital and Southeast Asian financial expertise may therefore become increasingly important through 2030.

Islamic Finance Assets: Growth Outlook

Standard Chartered’s earlier analysis projected assets of $7.5 trillion by 2028, while the newer 2030 outlook points to continued expansion thereafter.

Innovation Could Broaden the Market

Digital financial services could also accelerate Islamic finance adoption.

Islamic fintech companies are developing digital banking, investment, crowdfunding and wealth-management platforms that reduce the cost of reaching customers.

Technology can also make it easier for financial institutions to distribute Shariah-compliant products across borders.

At the same time, greater standardization could help investors compare products and encourage participation from institutions that previously viewed Islamic finance as operationally complex.

These developments could be especially important for younger consumers and small businesses.

Sustainable Finance Offers Another Growth Path

Islamic finance and sustainable investing also share several areas of potential overlap.

Both approaches emphasize responsible allocation of capital, although their underlying rules and objectives are distinct.

Green sukuk have already emerged as a way to finance renewable energy and environmentally focused infrastructure through Shariah-compliant structures.

As Gulf economies invest heavily in renewable power, water infrastructure and low-carbon industries, sustainable Islamic financing instruments could become an increasingly significant market.

This could also draw demand from investors interested in both Shariah compliance and environmental objectives.

Challenges Remain Despite Strong Outlook

Rapid growth does not eliminate structural challenges.

Different interpretations of Shariah standards across markets can make cross-border transactions more complicated.

The industry also faces shortages of specialized professionals, differences in regulation and varying levels of investor awareness.

Liquidity in some Islamic financial markets remains lower than in equivalent conventional markets.

Expanding the industry’s global role will therefore require cooperation among regulators, scholars, banks, investors and standard-setting bodies.

Greater consistency could make cross-border products easier to structure and help lower transaction costs.

Financial Connectivity Could Be the Next Major Phase

The industry’s next stage of development may depend less on growth within individual countries and more on connecting existing Islamic finance markets.

The GCC has substantial capital.

ASEAN has deep Islamic finance expertise.

South Asia offers huge populations and rapidly expanding economies.

Africa has significant financing requirements and an increasingly important role in global investment flows.

Building stronger financial corridors between these regions could transform Islamic finance into a more integrated international system rather than a collection of largely domestic markets.

Final Thoughts

The forecast for Islamic finance assets to reach $9.6 trillion by 2030 highlights the industry’s accelerating global importance.

After reaching approximately $6.2 trillion in 2025 following 13% annual growth, the sector could add another $3.4 trillion in assets before the end of the decade.

The GCC is expected to remain an important source of capital and financial expertise, while ASEAN, South Asia and Africa provide substantial opportunities for cross-border expansion.

Sukuk, Islamic banking, investment funds and digital financial products are all likely to contribute to future growth.

If financial institutions can improve standardization and deepen international connectivity, Islamic finance could move considerably closer to the centre of global capital markets by 2030.

Frequently Asked Questions

How large is the global Islamic finance industry?

Global Islamic finance assets reached approximately $6.2 trillion in 2025, according to the latest Standard Chartered-linked projection.

How large could Islamic finance become by 2030?

Assets are forecast to reach about $9.6 trillion by 2030, representing an increase of roughly 55% from 2025 levels.

How quickly did Islamic finance grow in 2025?

The industry recorded approximately 13% year-on-year asset growth in 2025.

Which regions could drive future growth?

The GCC, ASEAN, South Asia and Africa are expected to provide major opportunities, particularly through stronger cross-border financing and investment connections.

What are the main Islamic finance products?

Major segments include Islamic banking, sukuk, Shariah-compliant investment funds and takaful insurance.

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